Jim Henderson wrote:
> On Thu, 07 Aug 2008 09:49:24 -0700, Darren New wrote:
> 
>> Jim Henderson wrote:
>>> I don't want to owe that
>>> kind of money on an unsecured loan of any kind.  I'd much rather have
>>> things paid off (that's a really good feeling to have).
>> That's good.  But better an unsecured loan than a secured loan! :-)
> 
> Well, from a credit standpoint, a secured loan like an equity line (where 
> the "security" is the property) makes good sense.

Sure. I just meant that all else being equal, having the person you owe 
money to being unable to do something about it if you don't pay them 
back is a good thing. :-)

Of course, it's easier to get a lower rate and more money on a secured 
loan.

> I have heard some 
> people use the equity in their homes to make money (by investing it), but 
> that seems a little risky to me.  

Everything that makes you money is risky. It's a matter of whether the 
payment is worth the risk.

> But using that money appropriately is the key - using it to enhance the 
> value of the property through improvements seems to be the best route to 
> go.

It certainly doesn't hurt.  Even better is saving up, *earning* 
interest, *then* putting the roof on, if you can wait.

> types of "secured" credit cards (where you pay money as a security 
> deposit and then your limit is set to what you put down as a deposit).

The quotes shouldn't be around "secured" but around "credit" there. It 
isn't a credit card if you're not borrowing the money.

-- 
Darren New / San Diego, CA, USA (PST)
  Ever notice how people in a zombie movie never already know how to
  kill zombies? Ask 100 random people in America how to kill someone
  who has reanimated from the dead in a secret viral weapons lab,
  and how many do you think already know you need a head-shot?

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